OECD Cites Germany Over Corporate Bribery Enforcement

Germany is among the most active antibribery law enforcers but it could do more to hold companies responsible, the Organization for Economic Cooperation and Development said in its latest evaluation.

The country has penalized 328 people and 18 companies, or "legal persons," in foreign bribery cases since 1999, the organization's antibribery working group said in a periodic review of Germany's implementation and enforcement of an OECD international standard.

It commended Germany for its focus on holding culpable individuals accountable. "However, with companies held liable in only a quarter of the concluded foreign bribery cases, there are concerns that there is insufficient enforcement against legal persons," the review said.

The OECD said that of the 67 foreign bribery cases that Germany has wrapped up since 1999, only 17, or 25%, have resulted in companies being found liable, either for bribery or other offenses.

"In a number of cases, it is unclear why Germany's corporate liability regime was not enforced, in particular where the prosecutors have established the liability of corporate representatives," the report said.

Prosecutors in Germany have discretion over whether to pursue actions against corporations, including in foreign bribery cases, while prosecution of individuals is mandatory in criminal cases, the OECD report said. It noted that a February agreement to form a coalition between Germany's Social Democrats and Angela Merkel's Christian Democrat Union included a statement that companies that benefit from wrongdoing by staff should also be penalized.

The review also noted Germany's success in finding potential foreign bribery, saying that it is one of only a few signatories to the convention whose tax authorities play a significant role in this regard.

Write to Henry Cutter at Henry.Cutter@wsj.com. Follow him on Twitter at @henry_cutter.